Crypto’s recent resurgence is a great sign that “risk on” trades are alive and well. There is still a big, big appetite for risk, which is great because we’re getting into the bulk of earnings season.
We have a big-hitter coming up with Netflix set to report Thursday after the bell. Over the past year, Netflix Inc. (Nasdaq: NFLX) has seen some major moves on earnings, including a 13% bounce last quarter after an upside surprise.
The second quarter of 2022, it cratered 35% — after an earnings beat… This same quarter year over year, it tanked 22%, also on an earnings beat. But we were in a bear market, and we’re not quite as bearish right now.
So Netflix is likely to be a big mover, but here’s the problem…Netflix is trading around $330 a share as of Tuesday morning. If you think the stock is going to bounce on earnings, which it very well could, the weekly $350 calls were priced around $10.00 before the open Tuesday — very expensive.
You’d need the stock to hit $360 to make a decent profit. To make money on a bearish move, you’d need it to trade down to around $275.
What I’m getting at here is much like we said last quarter, it’s hard to find good value in trading Netflix earnings.
But there is a stock reporting Tuesday after the bell that presents a juicy opportunity. Check out Crush the Open — join us at 9 a.m. ET each Monday! — up top and let’s discuss a potential earnings home run trade in United Airlines Holdings Inc. (Nasdaq: UAL).
Keep in mind, this is an all-or-nothing earnings play where if wrong, it’s likely going to $0. But if right…
Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at firstname.lastname@example.org with your trading questions and I may cover them in a future video. You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
This could be one of the biggest financial opportunities of 2023 — and beyond.
Even Warren Buffett agrees it’s a “generational opportunity” for intelligent investors.
JPMorgan, Goldman Sachs and Forbes have issued dire reports that increased global demand for fossil fuels is contributing to an “Energy Supercycle.”
A term that the mainstream media is refusing to mention right now.
I’m talking about a 21st-century energy catastrophe — an event that could have an even greater impact than the 2008 recession.
And as you read this, the dominoes are starting to fall.
The fact is: If my research is correct…
Millions of Europeans could freeze to death this coming winter…
But for investors who take action, getting ahead of this 21st-century energy catastrophe…